BOOK 2 Page 1627 06/05/06 2:30 P.M. MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF JUNE 5, 2006 PRESENT: Chair Fredd "Glossie" Atkins, presiding, Vice Chair Danny Bilyeu, Members Lou Ann Palmer, Mary Anne Servian and Ken Shelin, Attorney Robert M. Fournier, Executive Director Michael A. McNees, and Secretary Billy E. Robinson ABSENT: None The meeting was called to order by Chair Atkins at 2:55 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY (CRA) ADVISORY BOARD MEETING OF MAY 15, 2006 (AGENDA ITEM CRA-1) Chair Atkins noted CRA consensus to approve the minutes of the Special Community Redevelopment Agency meetings of May 15, 2006. (FTR) 2. REPORT RE: COMMUNITY REDEVELOPMENT AGENCY (CRA) ADVISORY BOARD REPORT OF THE REGULAR MEETING OF APRIL 27, 2006 (AGENDA ITEM CRA-2) Kathleen Baylis, Chair of the CRA Advisory Board, and Chief Planner John Burg, Planning and Redevelopment Department, came before the Commission. CRA Advisory Board Chair Baylis recognized Carl Meyer, Member of the CRA Advisory Board, present in the Chambers. CRA Advisory Board Chair Baylis reported on the following tem from the April 27, 2006, Regular meeting: Request for Proposals (RFP) for the City-owned Property on Palm Avenue CRA Advisory Board Chair Baylis stated that the CRA Advisory Board had three recommendations concerning the RFP; that the first recommendation is to remove the attainable housing objective from the RFP. In response to a question from Member Shelin concerning locations at which Tax Increment Financing (TIF) funds could be used, CRA Advisory Board Chair Baylis stated that specific locations were not discussed. In response to a comment by Member Servian concerning the expansion of the Community Redevelopment Area, CRA Advisory Board Chair Baylis stated that considering locations in the expanded Community Redevelopment Area would be an opportunity for the CRA Advisory Board to consider. In response to a comment by Chair Atkins concerning recommendations of the CRA Advisory Board regarding affordable housing, CRA Advisory Board Chair Baylis stated the CRA Advisory Board has discussed having a workshop sO recommendations could be made. In response to a question from Member Shelin concerning the location for affordable housing, CRA Advisory Board Chair Baylis stated that the CRA Advisory Board was of the opinion the Palm Avenue site is not the appropriate location for affordable housing. CRA Advisory Board Chair Baylis stated that the second recommendation is for the finalists of the respondents to the RFP make a presentation to the CRA Advisory Board, which could be made at a joint meeting of the CRA and the CRA Advisory Board; that the third recommendation is to assign the points previously assigned to the affordable housing objective to the criteria of demonstrated ability to complete the project. In response to a question from Member Shelin concerning issuance of a Request for Qualifications, Chief Planner Burg stated that Section F(4), Minimum Contents of Proposals, of the RFP addresses the developers' financial ability to complete the project; that Staff's recommendations include the hiring of a financial advisor to review financial pro-formas of all the finalists to assure the developer team selected has the capability to implement the project. In response to suggestions from Member Shelin concerning additional requirements for inclusion in the RFP, Chief Planner Burg stated that the level of detail could be added if desired by the Commission. A motion was made by Member Palmer, seconded by Member Shelin, and carried by a 5-0 vote to receive the report of the May 15, 2006, Special meeting of the CRA Advisory Board. 3. APPROVAL RE: REQUEST FOR PROPOSALS (RFP) FOR THE CITY-OWNED PROPERTY ON PALM AVENUE (AGENDA ITEM CRA-3) Chief Planner John Burg, Planning and Redevelopment Department, came before the Commission and gave the Staff presentation. (FTR 3:09) In response to a comment by Member Palmer concerning the affordable housing objective in the Request for Proposals (RFP), Chief Planner Burg stated that the degree of the emphasis placed on affordable housing will affect the value of the land. In response to a comment by Member Shelin concerning the importance of affordable housing, City Manager McNees stated that the land represents an opportunity cost; that a consideration for the Commission is the value which could be extracted from the land and exported for use at another location; that another consideration is the ability to maintain affordability of the units. (FTR 3:17) In response to a comment by Member Palmer concerning flexibility for the CRA to make changes, Attorney Fournier stated that an issue will develop if the CRA deviates too far from the substantive provisions of the RFP; that the proposed RFP will be reviewed to assure the maximum flexibility possible. (FTR 3:29) In response to a comment by Vice Chair Bilyeu concerning ownership of the public parking structure, Attorney Fournier stated that included in the RFP are three options: condominium ownership, a long-term lease, and a permanent easement. In response to a question from Member Servian concerning the location of the interim replacement parking within 800 feet of the site, Chief Planner Burg stated that more flexibility can be provided to the developer if desired. Chair Atkins noted Commission consensus to change the requirement to indicate interim replacement parking shall be provided with no specific requirement as to location. In response to questions from Vice Chair Bilyeu and Member Servian concerning the composition of the Evaluation Committee, City Manager McNees stated that representatives of the City Attorney's Office, the Office of the City Auditor and Clerk, and the Neighborhood Partnership Office can serve on the Evaluation Committee if the organizations believe such representation would be beneficial. BOOK 2 Page 1628 06/05/06 2:30 P.M. BOOK 2 Page 1629 06/05/06 2:30 P.M. In response to comments by Members Servian and Palmer concerning the presentation, Chief Planner Burg stated that a joint meeting will be scheduled with the CRA Advisory Board for the presentation but separate meetings will be scheduled for the deliberations of the CRA and the CRA Advisory Board. (FTR 3:34) In response to a comment by Member Servian concerning negotiating with the next ranked developer, Attorney Fournier stated that developers submitted alternate proposals in response to the previously issued RFP for the Palm Avenue property, which caused difficulty in commencing negotiations with the next ranked developer. (FTR 3:36) In response to a question from Member Servian concerning the requirement for audited financial statements, Chief Planner Burg stated that language could be added to indicate an alternative mechanism could be provided to assure the development team is financially capable. In response to a question from Member Servian concerning the requirement for City Manager approval of a change in the composition of the development team, City Manager McNees stated that every circumstance may not be envisioned, which is the reason for the requirement. In response to a question from Member Shelin concerning the requirement for exemplary architecture, Chief Planner Burg stated that a detailed list of criteria does not exist; that the CRA and the Commission will receive input from three sources: Staff, the architectural representative on the CRA Advisory Board, and the CRA's ability to have exemplary architecture as a criterion. In response to a comment from Members Servian and Shelin concerning the requirement for a financial statement, Chief Planner Burg stated that language will be added to provide the developer an alternative mechanism to an audited financial statement. in response to a question from Member Servian concerning the issue regarding an encumbrance on the property raised in the May 22, 2006, letter from Ali Ebrahimi, President of the Ersa Grae Corporation, to the Mayor, Attorney Fournier stated that the stipulated final judgment issued at the time the City acquired the property by condemnation in 1998 included a requirement for the property to be used for the public good, which is the same requirement anytime a governmental entity acquires property by condemnation; that the case law indicates the use of the property for the public good is a legislative not a judicial determination; that a resolution to make the determination the use is for the public good will be presented to the CRA and Commission after approval of the RFP. In response to a comment by City Manager McNees concerning a no-lobbying provision, Chief Planner Burg stated that a no-lobbying provision will be added to the RFP. In response to a comment by Member Palmer concerning the qualifications proposed by Member Shelin, Chief Planner Burg stated that the qualifications proposed by Member Shelin will be added to the RFP. In response to a question from Vice Chair Bilyeu concerning review of the RFP with the development community, Chief Planner Burg stated that the RFP has not been reviewed with the development community. In response to a comment from Chair Atkins concerning the complexity of the process, Chief Planner Burg stated that the CRA will have to balance the points awarded for attainable housing compared to the financial objective. A motion was made by Member Palmer, seconded by Member Shelin, and carried by a 4-1 vote with Member Servian voting no to approve the Request for Proposals for the City-owned property on Palm Avenue with the changes discussed, consensus decisions reached, and the affordable housing objective retained. (FTR 3:57) 4. APPROVAL RE: AGREEMENT WITH ECONOMIC RESEARCH ASSOCIATES TO PROVIDE FINANCIAL SERVICES REGARDING THE EVALUATION OF PROPOSALS AND SELECTION OF A DEVELOPER FOR THE CITY-OWNED PROPERTY ON PALM AVENUE FOR AN AMOUNT NOT TO EXCEED $23,000 (AGENDA ITEM CRA-4) Chief Planner John Burg, Planning and Redevelopment Department, came before the Commission and gave the Staff presentation. (FTR 3:57) In response to a question from Member Servian concerning other vendors, Chief Planner Burg stated that the City already has a contract with Economic Research Associates (ERA). In response to a question from Member Servian concerning meetings of the CRA members with ERA, Chief Planner Burg stated that meetings with the CRA members can be included in the Scope of Work. A motion was made by Member Shelin, seconded by Member Servian, and carried by a 5-0 vote to authorize Staff to enter into an agreement with Economic Research Associates to provide financial services regarding the evaluation of proposals and selection of a developer for the City-owned property on Palm Avenue for an amount not to exceed $23,000. (FTR 4:00) 5. OTHER MATTERS/ADMINISTRATIVE OFFICERS A. Vice Chair Bilyeu stated that the City could investigate the possibility of using the parking lot at Whole Foods Market for City employee parking SO the City Hall parking lot could be used for public parking. Chair Atkins stated that the project to assure adequate signage for parking should be completed first. City Manager McNees stated that a new Parking Manager has been hired and will begin work in July 2006; that the use of the parking spaces in the Downtown area will be evaluated at that time. 6. ADJOURN Chair Atkinsadjourned the meeting at 4:01 p.m. FREDD "GLOSSIE" ATKINS, CHAIR ALTEST: RSaE Robenee 6 BILLY E. ROBINSON, SECRETARY BOOK 2 Page 1630 06/05/06 2:30 P.M.